Rippling counter-sues MCP startup Runlayer for patent infringement
Original: Now Rippling is counter-suing tiny startup Runlayer
Why This Matters
The dispute highlights growing IP and misappropriation risks when startups trial enterprise customers developing competing AI products.
HR startup Rippling filed a patent infringement lawsuit Monday against MCP gateway startup Runlayer, accusing it of infringing three patents. This follows Runlayer's prior suit last month alleging breach of contract and theft of product ideas after a year-long trial period that never converted to a paid deal.
HR platform Rippling filed suit on Monday against MCP gateway startup Runlayer, alleging infringement of three of its patents. The countersuit follows Runlayer's lawsuit filed last month accusing Rippling of breach of contract and misappropriating its product ideas after nearly a year of product trials that never resulted in a paid contract.
Runlayer, founded by third-time entrepreneur Andrew Berman (previously of Nanit and Vowel, which sold to Zapier in 2024), has raised $42 million total and offers an MCP gateway bundled with cybersecurity features including threat detection. MCP is an open standard enabling AI agents to connect with external data and software systems.
After the trial period ended without a deal, Rippling built its own MCP server — a product it plans to commercially release. A notable claim in Runlayer's original suit is that a Rippling employee warned Berman the company was building a 'copy' of Runlayer's product; Rippling states that employee has since revised that view.
Runlayer called Rippling's patent suit 'a desperate, retaliatory ploy,' while Rippling's spokesperson accused Runlayer of 'hypocrisy' for alleging IP violations while allegedly infringing Rippling's own patents. Both cases are now before the courts unless the parties reach a settlement.